If you’re saving money regularly, chances are, you’re already ahead in life. Still, stuffing your cash under your mattress or depositing it in a traditional bank account that earns a paltry interest is not the right way to do it, not when you can deposit money into an account that actually grows your funds with time.
Fortunately, we now live in one of the best times for Philippine consumer finance, thanks to pioneering digital banks like Maya. Today, you have easy access to a wide range of deposit account products, with some of these being specifically designed for certain lifestyles and financial goals. With the right mix, you can beat annual inflation and start growing your wealth in earnest.
Below are some of the most common types of deposit accounts you can find, some of which you can even open through the Maya app. Learn more about what’s on offer and how each one fits into your financial toolkit.
Deposit Account Type #1: Savings Account
The most familiar option for Filipinos, a savings account is perfect for everyday banking needs. Unlike many of the other options on this list, a savings account deposit retains liquidity, which means you can withdraw cash or facilitate payments and transfers at any time. The drawback is that many traditional banks offer low rates, in the area of 0.25% interest or even much lower, often far too measly to compensate for annual increases in living costs.
If you’re after something that can beat inflation, Maya Savings is a high-interest savings account that offers a base of 3.5% p.a., on your savings deposit, with the chance to boost up to 15% p.a. All you need to do to enjoy this boost is to use Maya services for daily transactions like buying load and paying bills. It’s not just restricted to activity on your Maya Savings deposit, either. You can enjoy the boost by consistently using Maya services for your everyday transactions, like paying bills, buying load, using Maya Easy Credit, paying via QR Ph, using your Maya Card, or even paying with Maya online.
Deposit Account Type #2: Current or Checking Account
If you handle frequent payments, issue checks for rental properties, or manage a small business, a checking account may be more suitable. Unlike savings accounts, this bank deposit focuses on transaction convenience, not interest earnings. The main benefit is higher withdrawal limits and more seamless transfers and payments, albeit with reduced interest earnings and often a higher minimum balance.
Deposit Account Type #3: Time Deposit Account
In contrast to highly liquid savings and checking accounts, a time deposit is ideal if you want higher guaranteed returns and don’t mind having your cash locked in. These funds hold your money for a fixed period, usually 3, 6, or 12 months, or a few years, and in return, you get better interest rates.
With Maya Time Deposit Plus, you can start with just PHP 5,000 and earn up to 6% p.a. Even better, unlike traditional options, Maya lets you top up your deposit until you reach your goal. This means you don’t need to commit a huge lump sum from the very start.
Deposit Account Type #4: Personal Goals Account
A newer feature pioneered by digital banks is the ability to create dedicated savings pockets, essentially creating mini subaccounts under a main savings account. This avoids the need to open separate bank accounts for organizing different funds.
On the Maya App, under Maya Savings, you can set up to five Maya Personal Goals, which you can label according to your needs (e.g. “emergency funds,” “travel funds,” “new phone,” etc.). Each goal starts earning up to 4% p.a. and can earn up to 8% p.a., with a higher balance. This approach makes saving for different needs simpler, ensuring you get to your savings targets more methodically.
Deposit Account Type #5: Foreign Currency Deposit Account (FCDA)
These accounts allow you to keep dollars, yen, euros, or other widely traded currencies in a local bank, in exchange for lower interest rates compared to typical savings accounts. The advantage is that you can access foreign-denominated funds without repeated conversions and forex fees.
If you have recurring overseas expenses, receive income in foreign currencies, or have plans to travel or study abroad, an FCDA can be quite practical. If you choose a stable currency, these deposit account products can also be a good way to safeguard your wealth against local exchange rate fluctuations.
Deposit Account Type #6: Payroll Account
Employers may partner with employees to open an account for salary disbursements. While payroll accounts typically come with very low or no interest, they’re also a common stepping stone into mainstream finance. Indeed, many Filipinos first experienced ATM and debit cards through these accounts. If you have one, you use this as a base account and then transfer the money into higher-earning options like Maya Savings or Time Deposit Plus accounts.
Deposit Account Type #7: Special Purpose Account
Some banks also offer accounts tailored to specific needs, a common example being passbook accounts for minors. These generally operate similarly to standard savings accounts, but they often come with perks such as waived fees or slightly tweaked interest rates. These accounts are seldom useful as a primary account, but they can be worth exploring if setting up small, goal-oriented funds for yourself or a loved one.
Pick the Right Deposit Accounts, Deposit Money Strategically, and Watch Your Funds Grow
The right deposit account mix boils down to whichever options match your saving habits and wealth-building goals. For most depositors, a savings deposit account is great for everyday use, while a time deposit helps one earn more on idle funds. For those with more complex needs, a personal goal account and a foreign currency deposit account can give the flexibility needed to sustainably meet milestones and weather economic volatility.
Whatever you need, it makes sense to choose the best. Maya is a Bangko Sentral Ng Pilipinas-supervised financial institution (BSFI), so you can rest assured all your Maya accounts are kept safe with hi-tech security and PDIC insurance. The next time you’re thinking about where to deposit money, remember the Philippines’ #1 digital bank has you completely covered.
